Honda has dabbled in hybrids before with the first generation Insight, the Accord Hybrid, and most recently with the second generation Civic Hybrid. However, neither model has been a runaway sales success like the overachieving Prius from Toyota -- both the original Insight and Accord Hybrid were eventually discontinued.

According to Honda, the Insight will use a 1.3-liter gasoline engine and the Integrated Motor Assist (IMA) hybrid system. Honda also says that the Insight will feature fuel economy identical to the current Civic Hybrid which is rated at 40 MPG city and 45 MPG highway. The identical fuel economy numbers may be disappointing to some, but remember that the Insight is expected to retail for less than $19,000 while the Civic Hybrid starts at a loftier $23,550.

Honda expects to sell 200,000 Insights globally each year.

When the Insight finally does arrive in showrooms next spring, it will do battle with the third generation Toyota Prius. Photos of the Prius leaked to the internet in mid-October. Toyota later confirmed that the leaked pictures were indeed of the new Prius.

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